Nifty Stares at Geopolitical Risks amid Deeper Correction Chances

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Market Wrap: Nifty, Sensex Slide Over 1% Amid Geopolitical Tensions, Sectoral Weakness

By S Jha

Mumbai, April 25, 2025: Indian equity markets ended sharply lower on Friday, with the Nifty 50 and Sensex plunging over one per cent each, driven by escalating geopolitical tensions between India and Pakistan following the Pahalgam terror attack.

According to Angel Broking’s post-market note, the Nifty fell over 200 points to a four-day low, closing at 24,246.70, while the Sensex shed 315.06 points or 0.39 per cent to end at 79,801.43.

The sell-off was broad-based, with only nine Nifty 50 and 45 Nifty 500 stocks closing in the green, signalling intense selling pressure, added the brokerage firm in its note.

Geopolitical Tensions Trigger Sell-Off

“The market opened with a gap-up, briefly crossing the 24,000 mark earlier in the week, but Friday’s session erased weekly gains as India announced economic and diplomatic measures against Pakistan post-Pahalgam,” said the brokerage firm.

Angel Broking noted that the breakout zone of 23,900–23,800 provided crucial support, acting as a pivotal level. “However, a breach of this zone or further escalation in tensions could push the Nifty towards 23,500–23,300,” it added.

On the upside, resistance lies at 24,250–24,350, with a break above signalling a continuation of the bullish trend. Despite the daily drop, the Nifty recorded its highest weekly close since December 2024, reflecting medium-term strength.

Sectoral Performance: IT Shines, Others Falter

Sectoral indices faced heavy selling, with Metals, CPSE, Energy, Pharma, Healthcare, and Realty dropping over two per cent. The IT sector was the sole gainer, holding firm amid a weak broader market.

Angel Broking highlighted IT’s resilience, driven by global tech optimism, as US markets, particularly the NASDAQ, closed strongly overnight, lifting Asian and European bourses.

The Nifty IT index has been a consistent outperformer, gaining over two per cent last week, per Moneycontrol. In contrast, Nifty Financial Services, despite a 19 per cent surge in FY25, saw profit booking, contributing to the day’s losses.

Corporate Earnings: Mixed Bag in Q4 FY25

Q4 FY25 earnings painted a mixed picture. Maruti Suzuki reported a 4.3 per cent YoY decline in net profit to ₹3,711 crore, missing estimates due to higher ad spends and discounts, though revenue grew 6.4 per cent to ₹40,674 crore. Shriram Finance posted a 10 per cent YoY profit rise to ₹2,139 crore, fuelled by higher interest income.

Tata Tech saw a 20 per cent YoY profit increase to ₹188.87 crore, announcing a ₹11.7/share dividend despite a revenue dip. ACC Limited’s profit fell 20 per cent YoY to ₹751 crore, despite 13 per cent revenue growth, while Hindustan Zinc’s profit soared 47.3 per cent YoY to ₹3,003 crore, beating estimates.

Regulatory and Investment Updates

The Securities and Exchange Board of India (SEBI) imposed a ₹10 lakh penalty on Future Retail for delayed disclosure related to an Amazon-linked interim order.

Meanwhile, Samsung announced a ₹1,000 crore investment in its Sriperumbudur facility, creating 100 jobs, as per Tamil Nadu’s Industries Minister. Apple plans to shift all iPhone assembly for the US market to India by next year, citing cost advantages and China-US trade tensions.

Stock Highlights

Dr. Lal Path Labs: Surged with volumes 15.77x above average weekly levels, signaling strong investor interest.
Navin Fluorine: Hit its highest weekly close since September 2023, marking a breakout and renewed momentum.
Ambuja Cement: Formed a bearish engulfing pattern, hinting at a potential reversal after recent gains.
SBI Life: Rallied 5.4 per cent with 10x average weekly turnover, reflecting robust buying.
HBL Engineering: Secured a ₹762.6 crore order for Kavach safety systems from Central Railway, boosting sentiment.

As markets navigate global cues and domestic challenges, Angel Broking recommends a balanced approach, focusing on resilient sectors like IT and selective buying in oversold segments like PSU Banks and FMCG, which have corrected significantly. With Q4 earnings and geopolitical developments in focus, volatility is likely to persist in the near term.

Disclaimer: This article makes no recommendation for any kind of trades in the stock market.

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